As interest in Kauai real estate shifts into higher gear, the always competitive market for single-family homes under $1M is already in overdrive. Today, there are fewer homes for sale, and many that would have listed in this range just a year or two ago will no longer as home prices jump across the board.
As of July, the Median Sale Price of a single-family home on Kauai was just under $1.08M. This is a 41.7% increase from the median price of $760K in early 2020. Of the 136 single-family homes currently available on the market, only 22 are under $1M. Just 10 are under $750K. Most of these sub $1M listings will get multiple offers, and many will end in bidding wars that spike the price over the asking price.
Kauai Median Sales Price Over 5 Years
Is this a new normal? Will home prices continue to rise indefinitely? While I’m not an economist, available data suggests home prices won’t reverse any time soon. I’d go so far as to say COVID-19 has even had a propulsive impact on the Hawaii housing market. As remote work becomes a more commonly accepted practice mainland, folks who have the option to work from anywhere will choose the islands. Others will choose to make Hawaii their second home as the islands proved themselves to be a remote sanctuary during the dog-days of the COVID-19 lockdown mainland. Yes, there are always fluctuations in the market (as plainly illustrated by the Kauai Median Sales price graph below), the general trend line year-over-year moves in one direction — upward.
National Median Sales Price Over 5 Years
Here’s a link to the 62 active listings under $1M, 40 of which are contingent / pending sales. Whether you’re looking to purchase an investment property or simply looking to stop renting, there’s never a better time to start looking than right now.